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Comment Re:I have a better idea... (Score 1) 649

It wasn't ever about the amount of money in the various accounts. It was about the services these banks performed for other banks. If those large banks failed, then the credit card processing they did for other banks would fail. The check clearing they did for other banks would fail. The funds clearing they did for other banks would fail. The cash transport they did for other banks would fail.

Yep. There was no way they could have kept their computers switched on without a bailout.

Comment Re:I have a better idea... (Score 1) 649

Fuck-em. Let them fail. bail out the deposits, make sure you get what you can from the loans outstanding

Nope. If the bank collapses, cancel all the mortgages/loans/credit card debt.

Shareholders would be pissed, some people get a windfall and that's not fair on the others .... but imagine what it would do for the economy - probably far more good than any bank bailout and shareholders would be more likely to vote for a CEO with his feet on the ground instead of the one with the best hair.

Comment Re:I have a better idea... (Score 1) 649

If Congress had not acted to bail out the various banking institutions during the crisis, about half of wage earning American's would have suddenly discovered that:
- they did not get paid
- they cannot access their bank account

Even if true, how about we give those trillions directly to the people and/or cancel their mortgages instead of propping up the system that caused the problem.

I bet a bank facing the loss of all its mortgages would be a damn sight more careful with their money than one that isn't.

The government also needs to step in every time they see a lot of money being magicked out of thin air by people near the bottom of the food chain (eg. the dotcom bubble, housing bubble, etc.). That never leads to anything other than collapse, a lot of rich people getting richer and the poor people picking up the tab.

Comment Re:I have a better idea... (Score 1) 649

The point is that you need to bail them out, because otherwise a recession becomes a depression or whole sectors of the economy will be destroyed. That's what "too big to fail" means.

Yeah, telling CEOs they still get golden parachutes if they drive huge corporations to ruin is a much better plan for the long term.

My idea to 'improve the system' is to only bail them out if the entire board of directors agrees to turn over all their assets to the taxpayer and/or go to jail.

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